diff --git a/public/app/features/plugins/extensions/validators.test.tsx b/public/app/features/plugins/extensions/validators.test.tsx
index afaaa04b543..b57f1f9e3a8 100644
--- a/public/app/features/plugins/extensions/validators.test.tsx
+++ b/public/app/features/plugins/extensions/validators.test.tsx
@@ -272,6 +272,18 @@ describe('Plugin Extension Validators', () => {
       expect(isReactComponent(() => <div>Some text</div>)).toBe(true);
     });
 
+    it('should return TRUE if we pass in a component wrapped with React.memo()', () => {
+      const Component = () => <div>Some text</div>;
+      const wrapped = React.memo(() => (
+        <div>
+          <Component />
+        </div>
+      ));
+      wrapped.displayName = 'MyComponent';
+
+      expect(isReactComponent(wrapped)).toBe(true);
+    });
+
     it('should return FALSE if we pass in a valid React component', () => {
       expect(isReactComponent('Foo bar')).toBe(false);
       expect(isReactComponent(123)).toBe(false);
diff --git a/public/app/features/plugins/extensions/validators.ts b/public/app/features/plugins/extensions/validators.ts
index 4ea9d9072c0..add198e178f 100644
--- a/public/app/features/plugins/extensions/validators.ts
+++ b/public/app/features/plugins/extensions/validators.ts
@@ -129,7 +129,14 @@ export function isPromise(value: unknown): value is Promise<unknown> {
 }
 
 export function isReactComponent(component: unknown): component is React.ComponentType {
+  const hasReactTypeProp = (obj: unknown): obj is { $$typeof: Symbol } =>
+    typeof obj === 'object' && obj !== null && '$$typeof' in obj;
+
+  // The sandbox wraps the plugin components with React.memo.
+  const isReactMemoObject = (obj: unknown): boolean =>
+    hasReactTypeProp(obj) && obj.$$typeof === Symbol.for('react.memo');
+
   // We currently don't have any strict runtime-checking for this.
   // (The main reason is that we don't want to start depending on React implementation details.)
-  return typeof component === 'function';
+  return typeof component === 'function' || isReactMemoObject(component);
 }